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   Rolling Over
   















 

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Rolling Over

(1) The process by which an investor closes an option or futures contract with a near term expiration and opens a contract on the same side of the market (long or short) with a more distant expiration. (2) More generally, substituting a position with a different expiration date and/or a different strike price for a previously established position. The process is called rolling up when substituting an option with a higher strike price, rolling down when substituting an option with a lower strike price, and rolling forward when substituting an option or futures contract with a more distant expiration.

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